Renault will still have a larger say in the Alliance, but it has effectively agreed to relinquish its right to the chairmanship of Nissan under the new agreement.

The heads of Renault, Nissan and Mitsubishi Motors have agreed to form of a new board of management for the three-headed automaking alliance.

As part of the deal agreed to in Tokyo, the "New Start" board will be chaired by Jean-Dominique Senard, chairman of Renault.

The other members of the board will be Thierry Bollore, CEO of Renault; Hiroto Saikawa, CEO of Nissan; and Osamu Masuko, CEO of Mitsubishi Motors.

According to the three companies, the board will meet every month, either in Tokyo or Paris, and decisions will be "consensus-based"

The new management structure will be in place for the Alliance's 20th birthday, which takes place on March 27.

In the memorandum of understanding accompanying today's announcement, the companies noted Jean-Dominique Senard is the "natural candidate" to be Nissan's vice chairman and one of its representative directors.

The company will wait on the recommendations from its special committee on improving governance before nominating a chairman.

As Renault currently owns 44 per cent of Nissan's voting stock, it is legally capable of nominating whoever it wants to the role of chairman.

It has seemingly relinquished this right, for now at least, in order to improve its relationship with Nissan.

Reports in the business press have pointed to growing tensions between the two automakers since the arrest of former CEO and chairman Carlos Ghosn on November 19, 2018.

Tensions have been reportedly been stoked by Renault's significant say over Nissan's affairs despite now being the smaller and less profitable of the two automakers.

Ghosn has been accused of understating his salary, shifting currency trading loses to Nissan, and other acts of financial impropriety.

He has strenuously denied all the charges levelled against him, and in an interview in February claimed he was arrested as part of a "plot" by Nissan executives to thwart his desired marriage of Renault and Nissan.

According to Automotive News, the former Nissan and Renault chief executive wanted to attend today's board meeting but his request was denied by a Tokyo court.

As part of his bail conditions, Ghosn is prevented from making contact with anyone involved in the indictments against him, and must seek court approval to attend board meetings. He remains on the board of Nissan, as the company has yet to schedule a shareholder meeting.

The Alliance has agreed to dissolve or put into mothballs some of the joint venture companies being investigated in relation to Ghosn's alleged misdeeds.